Funding Nonpoint Source Activities with the Clean Water State Revolving Fund ;-^--. JSz Clean Water ------- Clean Water State Revolving Fund (CWSRF) programs have funded over $40 billion of low- interest loans through 2003averaging $4.1 billion over the past five yearsfor water quality protection projects including wastewater treatment, nonpoint source pollution control, and watershed and estuary management. CWSRF programs now provide assistance to over 600 projects each year to control pollution from nonpoint sources and to protect our nation's estuaries. CWSRF projects address agricul- tural runoff, leaking on-site septic systems, and urban nonpoint source pollution including stormwater runoff and brownfield contamination. These expanding funding areas total more than $1.7 billion to date. CWSRF loans can have interest rates as low as zero percent and repayment periods up to 20 years. States have designed funding mechanisms to decrease rates and broaden eligibility for nonpoint source projects. Over 14,000 low-interest loans have been made to communities, nonprofit organizations, businesses, farmers, homeowners, and watershed groups. Repayment options can include: Utility user fees Stormwater management fees Dedicated portion of local, county, or state taxes or fees Recreational or license fees Membership dues paid to nonprofit groups Fees paid by developers Business revenues Fees paid by homeowners ------- CWSRF Nonpoint Source Funding / 3 What Is the CWSRF? Through the Clean Water State Revolving Fund (CWSRF) program, each state and Puerto Rico maintain revolving loan funds to provide inde- pendent, permanent sources of low-cost financing for a wide range of water quality infrastructure projects. The federal govern- ment provides funds to establish or capitalize the CWSRF programs with twenty percent state matching funds. After more than a decade of operation and over $40 billion in funded proj- ects, the CWSRF program is viewed as one of the nation's most successful environmental infrastructure funding programs. Much of the funding provided by the CWSRF program has been used to build needed wastewater treatment and collection facili- ties. Recognizing that nonpoint source pol- lution is a serious threat to water quality, state CWSRF administrators have begun to address these areas. Loans to control pollu- tion from nonpoint sources and to protect our nation's estuaries have increased to fund more than $900 million in projects over the past five years. CWSRF-A Revolving Fund Capitalization Federal Capitalization Provides Initial Funding CWSRF Profides Low-Interest Loans Communities, Individuals, Businesses, Nonprofits This brochure answers the most frequently asked questions about the CWSRF program's ability to fund nonpoint source and estuary protection projects. Examples from across the country demonstrate the program's potential for funding an array of water quality activities. CWSRF and Nonpoint Source Pollution Many states are successfully using the CWSRF loan program to fund important nonpoint source pollution mitigation projects. The CWSRF program provides very attractive low- interest loans that spread project costs over a repayment period of up to twenty years. Repayments are cycled back into the fund and used to pay for additional clean water proj- ects. CWSRF programs are currently funding projects that address agriculture runoff, leak- ing on-site septic systems, and urban non- point source pollution, including stormwater runoff and brownfield contamination. Funding of nonpoint source and estuary efforts now reaches more than 600 projects annually. With CWSRF as a valuable tool, state and local governments, local watershed and agri- cultural organizations, and many others are working to devise solu- tions that address non- point source pollution. Each state controls its own CWSRF program and can determine project eli- gibility requirements and set interest rates. Innovative partnership models have made many more nonpoint source projects possible. States Match Federal Capitalization Grants (20%) Repayments to CWSRF Become Available for New Loans ------- 4 / CWSRF Nonpoint Source Funding What Is Nonpoint Source Pollution? Nonpoint source (NFS) pollu- tion, unlike pollution from industrial facilities and sewage treatment plants, flows into our waterways from many dif- fuse sources. NFS pollution occurs when rainfall or snowmelt creates runoff that carries natural and human- made pollutants into lakes, rivers, wetlands, coastal waters, and even our under- ground sources of drinking water. NFS pollutants include: Fertilizers, herbicides, and insecticides from agricultural \9° &* lands and residential areas Oil, grease, detergents, and other chemi- cals from city streets and gas stations Sediment from construction sites, crop and forest lands, and eroding streambanks CWSRF Assistance for Nonpoint Source and Estuary Projects 800 700 600 500 400 300 200 100 I Millions of Dollars | Number of Agreements I Salt from irrigation practices and acid drainage from abandoned mines Bacteria and nutrients from livestock and pet wastes and from faulty septic systems Toxic chemical deposition from power plants and waste incinerators Why Fund Nonpoint Source Projects? Nonpoint source pollution is one of the most serious threats to our nation's water quality. State and local governments, local watershed and agricultural organizations, and many others are working to devise solutions that address nonpoint source pollution, but their efforts are frequently underfunded. CWSRF helps alleviate the financial hurdles facing nonpoint source projects. ------- CWSRF Nonpoint Source Funding / 5 What are the Advantages of CWSRF Loans? Significant Source of Financing Since 1988, CWSRF programs have funded over $40 billion in water quality projects, including $4.7 billion in 2003. Nonpoint source projects have historically comprised close to four percent of the total CWSRF funds available in a given year. Spending for non- point source projects has steadily increased, growing by $1.5 billion since 1995. In 2002, CWSRF funding for NFS improvements peaked at $240 million. Many of these projects would not have found other financial support. Flexibility to the States The Clean Water Act gives states the opportu- nity to implement a variety of assistance options in their CWSRF programs, including direct loans, refinancing, purchasing, or guar- anteeing local debt and purchasing bond insurance. State administrators can set loan terms, interest ratesfrom zero percent to market rateand repayment periods up to twenty years. States have the flexibility to target CWSRF resources to their particular water quality needs, including contaminated runoff from urban and agricultural areas, wet- lands restoration, groundwater protection, brownfields remediation, estuary management, and wastewater collection and treatment. States may also customize loan terms to meet the needs of small and disadvantaged commu- nities. In 2003, 65 percent of all loans (20 percent of funding) were made to communi- ties with populations less than 10,000. In addition, some states offer lower interest rates or greater subsidies for disadvantaged or financially strapped communities. Favorable Borrowing Terms CWSRF programs offer attractive, low inter- est rates to borrowers that may be as low as zero percent. Many states reduce rates for nonpoint source projects. Repayment of a CWSRF loan begins within one year of proj- ect completion. The repayment term may be as long as twenty years. In 2003, the CWSRF interest rate averaged 2.2 percent. A low-interest CWSRF loan can be viewed as being equivalent to a partial grant. For example, when the market rate is 5.0%, a 2.0% CWSRF loan for a $1 million project is equivalent to a $240,000 grant plus a $760,000 market rate loan. The grant amount represents the interest savings due to the lower rate. Administrative Ease CWSRF recipients will obtain assistance when applying for loans and throughout project implementation, ensuring a smooth process even for first-time borrowers. Environmental Results Limited funding sources often stall important water quality projects. By creatively apply- ing CWSRF funding, many more environmen- tally beneficial projects can be undertaken. ------- 6 / CWSRF Nonpoint Source Funding Which Projects are Eligible for CWSRF Funds? A broad array of nonpoint source projects can receive CWSRF funds. To be eligible, a project must help implement the state's 2003 Nonpoint Source CWSRF Loans Nonpoint Source Management Plan (319 Plan) under the Clean Water Act or be con- sistent with actions and priorities contained in a National Estuary Program Comprehensive Conservation Management Plan (CCMP). On-site/ Decentralized Sewage Treatment (219) Agricultural Cropland (211) Silviculture (1) Hydromodification (20) Ground Water (Unknown Source) (13) Urban (13) Sanitary Landfills (16) Brownfields (1) Storage Tanks (7) Agricultural Animals (155) MASSACHUSETTS SEPTIC PROGRAM- COMMUNITY PASS-THROUGH LOANS TO HOMEOWNERS The Massachusetts Community Septic Management Program has made loans through local municipalities to fund repair and replacement of failing septic systems since 1995. The pro- gram has funded more than 3,000 projects across the state with the cooperation of local municipalities and the CWSRF. Participating communities can borrow hundreds of thousands of dollars from the CWSRF pro- gram, but must first develop a septic management plan and an administrative structure for the loan program. Septic management plans identify and prioritize areas with septic systems that require monitoring, maintaining, and upgrading. Massachusetts provides grants of up to $20,000 to municipalities to support planning activities and program administration. Qualifying communities receive loans from the CWSRF program for twenty years at zero per- cent interest. They typically borrow $200,000. Homeowners receive twenty-year loans from communities at two to five percent interest. Municipalities can use interest accrued on the loans to support the administrative costs of the loan programs. After dispersing CWSRF loan proceeds, a community has one year to begin repayment. ------- CWSRF Nonpoint Source Funding / 7 NEW YORK AIRPORT RUNOFF MANAGEMENT PROJECT Stormwater runoff and deicing runoff from the Albany airport discharged into local water bodies and threatened drinking water sources for nearby towns. The New York State Environmental Facilities Corporation (NYSEFC) imposed a maximum allowable glycolthe chemical used to deice planeslevel of 1 mg/L and used their CWSRF to finance the Deicing Runoff Improvement Project. During the winter, a new collection system pumps deicing runoff to tanks. Then a high concentra- tion anaerobic waste treatment system reduces pollutant concentration to 0.3mg/L (and produces close to four times the energy that the system consumes). A portion of the treated runoff is recy- cled into the airfield irrigation system for the summer months. The Albany County Airport Authority pays a lower treatment fee for the remainder, which flows to the county treatment plant. Project costs totaled $8.7 million. The New York CWSRF program was able to fund $3 million of the project interest free for twenty years because the anaerobic treatment component was selected as an Innovative Technology Demonstration Project by NYSEFC. A second CWSRF twenty-year, low interest loan funded $5.4 million more of the project. To repay the loans, the airport authority issued revenue bonds to NYSEFC. Each state determines which nonpoint source projects receive funding through its CWSRF program. Contact your state CWSRF adminis- trator for eligibility requirements. To date, 36 states have funded nonpoint source pollu- tion mitigation with CWSRF funds. Projects funded fall into the following categories: Decentralized treatment or septic system rehabilitation or replacement Stormwater best management practices (BMPs) Agriculture and Forestry BMPs Conservation easement purchases or land acquisition for riparian protection Wetland protection and construction Underground storage tank remediation and removal Monitoring, capping, and on-site treatment at brownfield sites and sanitary landfills Remediation of mining sites Decentralized Treatment or Septic System Rehabilitation or Replacement In 2003, about a third of CWSRF nonpoint source funding supported decentralized treatment or septic system projects. Twenty- one states are using CWSRF funds to replace or rehabilitate faulty tanks, or to connect septic users to a municipal or decentralized sewer system. ------- 8 / CWSRF Nonpoint Source Funding Stormwater Best Management Practices (BMPs) Seventeen states use the CWSRF for stormwa- ter BMP projects. Funded projects include treatment options and pollution prevention strategies. Street sweepers remove sediment and chemical residues for treatment, while vegetative plantings stabilize soils and increase infiltration of precipitation. Sediment traps and basins, often combined with catch basin vacuum vehicles, contain and treat runoff much like a natural wetland. CWSRF funds support built stormwater man- agement methods not covered in a phase I or II stormwater permit. Wetland construction, including flood guards around existing wet- land areas, can also receive funding. Wetland acquisition and restoration funding is also available in several states. Agriculture and Forestry BMPs Fifteen states use the CWSRF for agriculture or forestry BMPs. Projects focus on livestock waste management, erosion control, and chemical use reduction. CWSRF programs often share management responsibilities with the Natural Resource Conservation Service or local soil and water conservation districts. Farm buildings, equipment, or in some cases water rights can be used as collateral. Minnesota's Agricultural Best Management Practices Loan Program, with 4,500 pollution reduction project loans totaling $51 million since 1994, illustrates eligibility and partner- ship structure. Almost every county is a pass-through partner in the AgBMP program. Local Comprehensive Water Plans guide a funding process that has successfully paired a simple application process with a three per- cent interest rate. Manure basins and spread- ers are eligible, as are water diversions to avoid feedlots. Conservation tillage equipment leaves crop residues covering 15 to 30 per- cent of the ground after seeding to prevent ------- CWSRF Nonpoint Source Funding / 9 ARKANSAS AGRICULTURE WATER QUALITY LOAN PARTNERSHIP The Arkansas Soil and Water Conservation Commission (ASWCC) has employed the Arkansas Revolving Loan Fund primarily to mitigate point source pollution. In an effort to address non- point source pollution, the state focused on the Beaver Reservoir and Illinois River watersheds, two of the top three on the state priority list. Northwest Arkansas covers more than two million acres, contains more than 7,000 farms, and is one of the fastest growing metropolitan areas in the U.S. ASWCC determined that approximately 80 percent of the pollutant loading originated from nonpoint sources. Aiming for rapid implementation of an NPS program, ASWCC looked to state and local organiza- tions that already had relationships with local landowners. A partnership with the Natural Resources Conservation Service emerged. NRCS works with local conservation districts to help landowners develop conservation plans and implement Best Management Practices (BMPs). NRCS also administers the Environmental Quality Incentives Program (EQIP), a grant program that helps farmers implement BMPs. Conservation districts were receiving numerous applica- tions for a limited amount of EQIP funding. The Arkansas Revolving Loan Fund provided funding to cover the demand. Arkansas signed agreements with seven banks in the four-county area. These banks have made over $500,000 in loans to local farmers to implement BMPs such as stacking sheds, fencing, compost sheds, and trenching. WISCONSIN MAKES CWSRF LOANS TO BROWNFIELDS The Wisconsin legislature allocated twenty million dollars of its CWSRF funds to municipal proj- ects that address water quality impacts of brownfield sites. Using CWSRF loans with interest rates that are 55 percent of the municipal bond market rate, Wisconsin has funded two brown- field cleanup projects for $1.9 million. One successful project was the City of Plymouth landfill closure. Plymouth used this site for the disposal of construction debris, commercial waste, and industrial waste from 1955 through 1990. A $1.3 million CWSRF loan supported investigation and remediation of the site. The city capped and covered the landfill and installed groundwater monitoring equipment. The twenty-year loan has a zero percent interest rate. ------- 107 CWSRF Nonpoint Source Funding soil loss. Sediment control basins, terraces, diversions, buffer and filter strips, rip-rap- ping, cattle exclusions, windbreaks, and gully repair stabilize stream banks. Other qualify- ing projects may include well sealing, chemi- cal and petroleum storage containment struc- tures, chemical spray equipment, irrigation systems, and education programs. Brownfields and LIST Remediation Many states are considering the use of CWSRF loans to fund brownfield remediation and underground storage tank (UST) removal. Brownfield projects eligible for the CWSRF include site assessments, UST removal and disposal, contaminated soil or sediment removal and disposal, capping wells or soil, remediation of stormwater runoff (including wetland construction), and monitoring groundwater and surface water for contami- nants. Although real estate and construc- tion firms are often reluctant to pay for brownfield remediation, tax revenues from site redevelopment may indirectly fund loan repayments. Land Acquisition and Conservation Easements CWSRF programs in several states support purchase of land or conservation easements to preserve riparian ecosystems and to pro- tect waterways from nonpoint source pollu- tion. Runoff from farms and from residential and commercial development carries warm water, sediment, organic matter, bacteria, and chemical residues into waterbodies. Without riparian habitat to buffer these pol- lutants, water quality can quickly degrade. Conservation easements are deed restrictions that can limit development or clearing of part or all of a property. CWSRF programs make loans to municipalities, parks authori- ties, or land trusts to purchase easements on riparian lands or wetlands. A water utili- ty may also buy development rights as part of a source water protection (SWP) program for public water supply. These loan recipi- ents work with landowners to establish clear, enforceable restrictions and a moni- toring procedure. Property owners are com- pensated for their land rights and receive property and estate tax breaks because they have reduced the commercial value of their land. The same parties can also borrow CWSRF monies to fund direct purchase of wetlands, riparian corridors, or groundwater recharge lands. Land acquisition is simple when compared to deed restrictions, but easements allow conservation of additional riparian habitat because they can effectively protect waterways while preserving existing land uses. ------- CWSRF Nonpoint Source Funding 711 CALIFORNIA LAND ACQUISITION WITH THE CWSRF California has used over $112 million of the state's CWSRF funds, combined with grant funding, to acquire over 29,000 acres of land for protection of sensitive species and preservation of unique habitats. Residential housing development in many areas of California has raised water quality concerns among citizens and local planners. Grading and conversion of natural vegetation to impervious soils increases sediment and polluted runoff to already stressed streams and rivers. CWSRF land acquisitions have addressed nonpoint source pollution by precluding urban/suburban development, protecting and enhancing estuary resources, and protecting and restoring unique habitats for endangered and other listed species. The Nature Conservancy and other nonprofit environmental groups in California have played a vital role in securing CWSRF funding for land acquisition and have provided repayment sources for the loans. Groups such as TNC and the Audubon Society dedicate a portion of their mem- bership fees to loan repayment. Some groups have also conducted community fundraising drives and dedicated grant money for loan repayment. CWSRF has funded eight key land acqui- sition projects in California: Howard Ranch Acquisition, Sacramento County - 13,000 acres, $8 million of $14.3 million Bahia Acquisition, Marin County, CA - 654 acres, $800,000 of $5.3 million Ramona Grasslands, San Diego County - 8,000 acres, $15 million Lakeside Land County Parcel, San Diego County - 4.1 acres, $1.2 million East Elliot Acquisition, San Diego City - 2,120 acres, $46.2 million Napa River/Napa Creek Flood Protection & Estuary Restoration Project - 720 acres, $34 million of $200 million Sacramento Prairie Valley Vernal Pool - 2,500 acres, $1.5 million Cuyamaca Watershed Protection Project, San Diego County - 2,117 acres, $5.3 million ------- 127 CWSRF Nonpoint Source Funding Acid Mine Drainage Treatment and Runoff Control As groundwater and surface runoff flows through mines and tailings piles, it reacts with minerals to form sulfuric acid, which then leaches toxic metals into local streams, lakes, and aquifers. Over 9,000 miles of U.S. streams are polluted by acid mine drainage (AMD). More than 1.1 million acres of aban- doned coal mine lands and hundreds of hard rock mining sites have left dangerous embankments, retaining walls, and surface impoundments. Mining companies have often gone out of business, leaving no responsible party to manage toxic, highly acidic waste ponds. In some locations, streams run through old mines, exacerbating the problem. EPA, USGS, and other federal agencies are working with West Virginia and Pennsylvania to develop an interstate abate- ment approach. Pennsylvania is the first state to fund AMD cleanup projects with its CWSRF program. PREVENTING ACID MINE DRAINAGE OVERFLOW IN PENNSYLVANIA The abandoned Shannonpin Mine Pool in Greene County, Pennsylvania contains billions of gal- lons of highly acidic mine wastewater. Each year it comes closer to overflowing into Dunkard Creek, a major tributary of the Monongahela River, and causing serious environmental damage. The threat to drinking water supplies, swimming, boating, and fishing has led to a state consent decree with Dana Mining, Inc. and the loan recipient, AMD Reclamation, Inc. The Pennsylvania Infrastructure Investment Authority (PENNVEST) has stepped in with a $4.3 million dollar CWSRF loan to build a five million gallon per day acid mine drainage treatment facility and an 11,000-foot outfall sewer. Combined with $2.8 million in grant funding from the Departments of Environmental Protection and Community and Economic Development, the money will allow dewatering and treatment of the acidic mine water. In low-income Dunkard Township, this also results in 30 jobs preserved and 50 jobs created by Dana Mining and 20-30 construction jobs and a few permanent new jobs by AMD Reclamation, Inc. The $7.1 million in financing will result in an initial $6 million investment in renewed mining operations by Dana. ------- CWSRF Nonpoint Source Funding 713 How Does the CWSRF Borrowing Process Work? Communities make up a large portion of the CWSRF borrowers, but nonprofit organiza- tions, businesses, farmers, homeowners, and watershed groups are eligible in many states. Those interested should contact their state CWSRF program to determine whether fund- ing is available for a potential project. (See contact information starting on page 18.) Prospective borrowers may find specialized programs (e.g., linked-deposit loans) in place to make CWSRF funding more accessible. In states that provide direct lending for NFS pollution control and estuary protection projects, borrowers will follow a process sim- ilar to that used by municipalities for larger wastewater system projects. States often provide hands-on technical support to small borrowers to make the application process more user friendly. CWSRF programs follow an annual funding cycle. Each year interested parties with new projects submit basic project information to the CWSRF for inclusion in the state's annual Intended Use Plan. Selected projects then submit application materials to the state. Approved funding is immediately available to pay for costs as the project proceeds. Loan repayment begins within one year of project completion. Which Repayment Sources are Used for Nonpoint Source Loans? The loan repayment source may reflect the type of project undertaken (stormwater fees for stormwater projects) or may be a non- specific source such as local property tax revenues. Repayment options have included: Wastewater system user charges Stormwater management fees Dedicated portion of local, county, or state taxes or fees Recreational or license fees Membership dues paid to nonprofit groups Fees paid by developers Business revenues Fees paid by homeowners ------- 147 CWSRF Nonpoint Source Funding OHIO'S WATER RESOURCE RESTORATION SPONSOR PROGRAM Ohio established the Water Resource Restoration Sponsor Program (WRRSP) in 2000, as a component of its CWSRF, the Ohio Water Pollution Control Loan Fund (WPCLF). State adminis- trators realized that for WRRSP to be an effective tool for water quality improvements, it had to address nonpoint sources of impairment in addition to providing loans to improve municipal wastewater treatment systems. The major recipients of WPCLF financing are municipal wastewater treatment systems. If Ohio EPA could induce these borrowers to increase the size of their loans to fund habitat restoration and protection, it would harness their revenue to improve not only municipal wastewater treat- ment facilities, but also to address NPS water pollution in Ohio. The key to establishing the WRRSP was to structure combination loans such that the municipal wastewater treatment system would see no increase in cost from the sponsorship. Using its authority to lower interest rates from the market rate to zero percent, Ohio EPA was able to restructure the original wastewater treatment improvement loan so that the loan recipient, though sponsoring an additional project to address water resource habitat issues, actually saves money on what it would have cost to repay the original loan for the wastewater facilities alone. Example: $1 million for a wastewater treatment project and $393,442 for a restoration project 1. If this community did not participate in the WRRSP program, the $ 1,000,000 wastewater treatment project would receive a 3.8% loan. The total loan repayment amount would be $1,436,707 over the course of the repayment term. 2. If the community undertakes both projects, $1,000,000 for the wastewater treatment project and $393,442 for the restoration proj- ect, the CWSRF could reduce the interest rate to 0.3% so the community would suffer no hardship and still repay only $ 1,436,707 over the course of the loan repayment term. 3. However, the CWSRF provides additional incen- tive by reducing the community's interest rate from 0.3% to 0.2%. 4. The community completes a wastewater treat- ment project, supports a watershed restoration project, and saves $14,514. ------- CWSRF Nonpoint Source Funding 715 What Lending Options are Available? States use a variety of lending methods to reach different potential borrowers. Direct lending is just one of the options. Many states use conduit lending (loans passed through state agencies, municipalities, or local banks) to reach more borrowers. These lending methods are often called pass- through or linked deposit lending. Pass-Through Lending In a pass-through loan, a CWSRF program makes a loan to another government agency or to a municipality that then passes the money to private borrowers as loans for non- point source pollution projects. The town, county, or state agency reviews the project and the finances of each borrower. Pass-through loan programs benefit CWSRF programs, pass-through partners (towns, counties, and state agencies), and borrow- ers. CWSRF programs can place risk and management responsibilities with local pro- gram partners who identify and fund high priority projects. Towns, counties, and state agencies receive funding for their nonpoint source priorities. Borrowers gain from lower interest rates. In addition, local govern- ment agencies may have greater flexibility to provide loans to applicants with relatively weak credit if the borrower's nonpoint source project is a high priority for the state or local government agency. Linked Deposit Lending In a linked deposit loan approach, a state works with local private lending institutions to fund nonpoint source pollution control. The state agrees to accept a reduced rate of return on an investment (e.g., a certificate of deposit) and the lending institution agrees to provide a loan to a borrower at a similarly reduced interest rate. For example, if the typical earnings rate for a certificate of deposit (CD) is five percent, a state might agree to purchase a CD that earns two percent interest, and in exchange, the lend- ing institution agrees to provide a loan to a borrower at an interest rate that is three percentage points lower than the market rate for the borrower. In this program, the CWSRF investment (deposit) is linked to a low-interest loan, thereby earning the description "linked deposit loan." Linked deposit loan programs provide bene- fits for CWSRF programs, local financial institutions, and borrowers. CWSRF pro- grams can support high priority nonpoint source projects and place risk and manage- ment responsibilities with local lenders. Financial institutions earn profits from the linked deposit agreements and offer an additional service for their customers. Borrowers save money with low-interest loans and can comfortably work with their local bank or credit union. ------- 167 CWSRF Nonpoint Source Funding OHIO CWSRF LINKED DEPOSIT LOANS - OVER 300 PROJECTS SINCE 1993 Ohio has used a linked-deposit loan program since 1993 to fund projects that support county watershed management plans. This program has funded more than 300 projects, including the repair of onsite wastewater treatment systems and the implementation of best management practices for agriculture, forestry, stormwater, and land development. Each county's program is developed with two concurrent steps: the county soil and water conservation district develops a watershed management plan, and the CWSRF program and local financial institutions enter into agreements describing requirements and procedures for linked deposit loans. Watershed management plans identify and prioritize pollution sources, suggest mitigation actions, identify funding sources, and establish an implementation schedule for water quality improvements. Ohio EPA and public review lead to approval of the county soil and water dis- trict's plan. The CWSRF program and the soil and water conservation district then sign a mem- orandum of understanding that describes how these two entities will coordinate their implemen- tation of the management plan. As development and review of a watershed management plan proceeds, soil and conservation districts identify local banks that would like to participate in a linked deposit program. Any borrower with a project that helps to implement the watershed management plan is eligible for a linked deposit loan. Participating banks review borrowers' credit using their own credit standards. If a bank approves a linked deposit loan, the CWSRF program purchases a CD of equal value from the bank. The CWSRF program accepts a CD interest rate that is five per- centage points lower than the rate of a U.S. Treasury Note or Bond with the same term. The bank reduces the borrower's loan inter- est rate by five percentage points. The bank makes semiannual payments of princi- pal and interest to repay the CWSRF for its investment in the CD, even if the borrower defaults on the linked deposit loan. Linked Deposit Approach State SRF Program SRF Deposit (CD) CD Interest Earnings Low-Interest Loan Repayment SRF Eligible Project ------- CWSRF Nonpoint Source Funding 717 What Kinds of Projects Have Been Funded in My State? To date, 36 states have funded nonpoint source projects with CWSRF loans. Several more states will fund projects in the near future. Project types undertaken in each of these states are listed on the following pages, along with state contacts for more information. ------- 187 CWSRF Nonpoint Source Funding State Agency Contact Phone Number Alaska Department of Environmental Conservation 907-465-5010 www.state.ak.us/local/akpages/ENV.CONSERV/waterhome.htm Types of Projects: Landfill capping and closure New landfills and leachate treatment facilities Monitoring existing landfills ARIZONA Arizona Water Infrastructure Finance Authority 602-364-1310 www.wifa.state.az.us/main.html Types of Projects: Elimination of septic systems (extension of sewer lines) ARKANSAS Arkansas Development Finance Authority 501-682-5925 www.state.ar.us/adfa/programs/wwrl.html Types of Projects: Agriculture BMPs (Linked deposit) Land acquisition for source water protection CALIFORNIA State Water Resources Control Board 916-341-5250 www.swrcb.ca.gov/funding/index.html Types of Projects: Reduction of Ag subsurface drainage - conversion to sprinkler/gated pipe irrigation (Conservation district leases equipment to farmers) Wetland enhancement/stormwater management Construction of stormwater retention/detention facilities and stormwater quality control basins Removal of polluted sediment from river by suction dredge Subsurface drainage recycling project aimed at transfering high-salt subsurface water to a storage facility and mixing these waters with fresh water to recycle for irrigation Demonstration & education project for sustainable vineyard Concrete lining for irrigation canals Dairy farm BMPs Silviculture BMPs (linked deposit) Protection of rare vernal pool habitat Stormwater BMPs for homeowners (Tahoe linked deposit) Septic tank rehabilitation & replacement (linked deposit) Purchase of land for floodplain management COLORADO Colorado Water Resources and Power Development Authority 303-830-1550 www.cwrpda.com Types of Projects: Stormwater and sediment management DELAWARE Delaware Department of Natural Resources & Environmental Control 302-739-4860 www.dnrec.state.de.us/water2000/sections/fab/FABloans.htm Types of Projects: Poultry Ag BMPs Dairy BMPs Septic tank rehabilitation & replacement Removal of leaking LIST, remediation of contaminated sites and groundwater, and installation of leak detection systems on new tanks Florida Department of Environmental Protection 850-245-8358 www.dep.state.fl.us/water/wff/cwsrf/ Types of Projects: Stormwater management Agricultural BMPs Georgia Environmental Facilities Authority 404-656-3824 www.ganet.org/gefa/state_revolving.html Types of Projects: Stormwater management Hawaii Department of Health 808-586-4294 www.state.hi.us/doh/eh/wwb/index.html#Construction Types of Projects: Stormwater management Septic system upgrades ------- CWSRF Nonpoint Source Funding 719 State Agency Contact Phone Number Idaho Department of Environmental Quality 208-373-0400 www.deq.state.id. us/water/waterl.htm#loan_program Types of Projects: Animal and agriculture BMPs (Sub-revolving fund through the Soil Conservation Commission) Study of septic alternatives Iowa Department of Natural Resources 515-281-5918 www.state.ia. us/government/dnr/organiza/epd/wastewtr/srloan. htm Types of Projects: Septic system rehabilitation and replacement (linked deposit) Maine Department of Environmental Protection 207-287-3901 www.state.me.us/dep/blwq/grants.htm Types of Projects: Failed septic system replacement Landfill capping and closure Nutrient management program for manure storage facilities MARYLAND Maryland Water Quality Financing Administration 410-631-3119 www.mde.state.md.us/wqfa/index.html Types of Projects: Landfill capping and closure Leachate treatment facilities at new landfills Stormwater BMPs including pond restoration (Linked deposit) Septic tank rehabilitation & replacement (Linked deposit) LIST remediation (Linked deposit) Ag BMPs (Linked deposit) Shoreline and stream bank restoration Land acquisition for sourcewater protection MASSACHUSETTS Massachusetts Department of Environmental Protection 617-292-5500 www.state.ma.us/dep/brp/mf/srf.htm Types of Projects: Septic tank repair and replacement (local Govt. pass-through) Landfill capping and closure Stormwater management Land acquisition for riparian protection MINNESOTA Minnesota Pollution Control Agency 651-296-6300 www.pca.state.mn.us/water/revolvingfund.html Types of Projects: Animal Ag waste management (local govt. pass-through) Conservation tillage equip- ment (local govt. pass-though) Structural erosion control projects (local govt. pass-though) Septic system rehabilitation & replacement (local govt. pass-through) Abandoned well sealing (local govt. pass-though) Street sweepers, catch basin vacuum vehicles, sediment traps and basins MISSOURI Missouri Department of Natural Resources 573-751-3443 www.dnr.state.mo. us/finandalopp/water_quality.htm Types of Projects: Animal waste management (state govt. pass-though) Septic system removal Montana Department of Environmental Quality 406-444-5324 www.deq.state.mt.us/ppa/nonpoint/NonpointSourceProgram.asp Types of Projects: Cropland BMPs (state govt. pass-though) Stormwater management Landfill closure NEBRASKA Nebraska Department of Environmental Quality 402-471-2186 www.deq.state.ne. us/WasteWat.nsf/Pages/CA#Secl Types of Projects: Remediation of leaking UST (state govt. pass-though) Silt basin for Omaha ------- 20 / CWSRF Nonpoint Source Funding State Agency Contact Phone Number Nevada Division of Environmental Protection 775-687-4670 http://ndep.state.nv.us/bwpc/srlf01.htm Types of Projects: Purchased water rights to augment river flows to restore water quality and preserve and protect endangered species Septic elimination NEW HAMPSHIRE New Hampshire Department of Environmental Services 603-271-3503 www.des.sta te.nh.us/wwe/srf.htm Types of Projects: Landfill capping and closure NEW JERSEY New Jersey Department of Environmental Protection 609-984-0058 www.state.nj.us/dep/grantandloanprograms/er_eifp.htm Types of Projects: Stormwater management including salt storage facilities Stream bank stabilization and restoration Equipment: street sweepers, outfall netting, and aquatic weed harvesters Landfill closures Brownfield remediation Land acquisition NEW MEXICO New Mexico Environment Department 505-827-2855 www.nmenv.sta te.nm.us/cpb/cwsrf.html Types of Projects: Decentralized wastewater treatment Stormwater management Brownfield remediation (Pending) NEW YORK New York State Environmental Facilities Corporation 518-402-6924 www.nysefc.org/srf/SRFhome.htm Types of Projects: Landfill capping, closure, and monitoring New landfill and leachate facilities Land acquisition to protect water quality Brownfield remediation Stormwater management NORTH DAKOTA North Dakota Department of Health 701-328-5211 www.health. state, nd.us/ndhd/environ/mf/index. htm Types of Projects: Landfill capping and closure New landfills and leachate treatment facilities Agricultural BMPs (Irrigation) Ohio Environmental Protection Agency 614-644-2832 www.epa.state.oh.us/defa/wpclf2.html Types of Projects: Animal/Cropland Ag BMPs (linked deposit) Development of BMPs Brownfield reme- diation Remediation of leaking LIST Landfill capping and closure New landfills and leachate treat- ment facilities Oregon Department of Environmental Quality 503-229-6412 www.deq.state.or. us/wq/wqgrant/wqgrant.htm Types of Projects: Stormwater management Septic system repair & replacement (local govt. pass-through) Wetland restoration PENNSYLVANIA Pennsylvania Infrastructure Investment Authority (PENNVEST) 717-783-6798 www.pennvest.state.pa.us/pennvest/cwp/browse.asp?A=4 Types of Projects: Septic system rehabilitation & replacement Acid mine drainage treatment and Stormwater management New collection systems Forest & land acquisition (Pending) ------- CWSRF Nonpoint Source Funding 721 State Agency Contact Phone Number RHODE ISLAND Rhode Island Clean Water Finance Agency 401-453-4430 www.ricwf.state.ri.us/programs.html Types of Projects: Stormwater management Land acquisition Landfill capping and closure New landfills and leachate treatment facilities Septic rehabilitation and replacement (state govt. pass- through) SOUTH DAKOTA South Dakota Department of Environment & Natural Resources 605-773-4216 www.state.sd.us/denr/DFTA/WWFunding/wwfprg.htm Types of Projects: Landfill capping and closure New landfills and leachate treatment facilities Texas Water Development Board 512-463-7779 www.twdb.state.tx.us/assistance/assistance_main.htm Types of Projects: Stormwater BMPs Constructed wetlands for wastewater mgmt. Septic system reha- bilitation and replacement New collection systems Utah Department of Environmental Quality 801-538-6146 www.deq.state.ut.us/EQWQ/Con_Asst/Con_asst.htm Types of Projects: Animal Ag BMPs Failing septic system replacement (Pending) Stormwater BMPs VIRGINIA Virginia Resources Authority 804-644-3100 www.vra.state.va.us/project/wastewater.html Types of Projects: Septic system rehabilitation & replacement (local govt. pass-through) Animal/Cropland Ag BMPs (w/ Farm Credit) Land purchases and conservation easements Brownfields (Pending) WASHINGTON Washington Department of Ecology 360-407-6566 www.ecy.wa.gov/programs/wq/funding/index.html Types of Projects: Septic system repair & replacement (local govt. pass-through) Stormwater BMPs Dairy Ag BMPs (local and state govt. pass-though) Wetland restoration and protection Riparian corri- dor revegetation WEST VIRGINIA West Virginia Department of Environmental Protection 304-558-0637 www.dep. state. wv.us/item.cfm?ssid=ll&sslid=220 Types of Projects: Poultry Ag BMPs (Linked deposit) Septic tank rehabilitation & replacement WISCONSIN Wisconsin Department of Natural Resources 608-266-2621 www.dnr.state.wi.us/org/caer/cfa/EL/elindex.html Types of Projects: Brownfield remediation Landfill capping and closure WYOMING Wyoming Department of Environmental Quality 307-777-7075 http://deq.state.wy.us/wqd/revolvingfunds.asp Types of Projects: Remediation of leaking UST Stormwater BMPs New landfill water quality compo- nents Failing Septic system replacement (local govt. pass-though) ------- Clean Water Sir Ivin^f't For more information about the Clean Water State Revolving Fund, please contact: Clean Water State Revolving Fund Branch U.S. Environmental Protection Agency 1201 Constitution Avenue, NW (Mailcode 4204M) Washington, DC 20004 Phone: (202) 564-0752 Fax: (202) 501-2403 Internet: www.epa.gov/owm/cwfinance/cwsrf ------- |